Proposed $50 Billion Investment in AI and Data Centers in Malaysia
Key Facts
Malaysian Prime Minister Anwar Ibrahim said a global investor plans to invest $50 billion in artificial intelligence, new technology and data centers in Sarawak and Peninsular Malaysia. Bernama reported the remarks on October 24, quoting Anwar as saying the investor had selected Kuching, Sarawak’s capital, along with Peninsular Malaysia as locations for the proposed project. The report did not name the investor, while Anwar described the plan as one of the largest proposed investments in the region. He said the investor had told him of its intention during a video conference held on the Tuesday before the announcement. The stated value puts the plan at the forefront of discussion about Malaysia’s efforts to attract technology infrastructure investment, but it remains an investment intention announced by the prime minister, not a confirmed project.
According to Anwar, the targeted sectors include artificial intelligence, new technology and data centers, with no published details on how funds would be allocated among them or on the implementation schedule. He said the project could create new and better job opportunities for Malaysians, with a particular focus on young people and students in schools and higher education institutions. The proposal reflects the local impact the government seeks to link to technology investments: the issue is not limited to hosting digital facilities, but also includes expanding job opportunities. The prime minister linked Malaysia’s ability to attract international investors to maintaining political stability and leadership and creating a suitable investment environment. He said investors’ confidence “must be maintained through political stability and leadership, as well as ensuring a conducive environment for investment.”
Separately, SoftBank announced on October 8 a framework agreement with Grab and Petroleum Sarawak to explore developing a digital infrastructure and artificial intelligence platform in Sarawak. The agreement called for preparing a roadmap to develop the platform in phases, while exploring opportunities in computing, services, robotics, workforce development and community development. The agreement provides additional context on technology companies’ interest in studying digital projects in Sarawak, but it is separate from the $50 billion plan Anwar discussed. It does not establish the identity of the investor mentioned by the prime minister, nor does it link the agreement to the proposed plan. SoftBank said the framework agreement does not require the companies to enter into definitive agreements on the envisioned project or to implement it.
The announced plan comes as Malaysia’s domestic market is already seeing approvals for data center projects. As of July 2026, Malaysia had approved 27 projects with estimated investments of 225.97 billion ringgit, according to figures Bernama reported from the Ministry of Digital Economy. One center had begun operations, while the other projects remained under construction. Approved projects are subject to a minimum local content requirement of 30%, with the Malaysian Investment Development Authority monitoring compliance through implementation reports submitted every six months. These requirements show that approval for a data center project in Malaysia is also tied to local participation and regular monitoring of implementation.
The Malaysia Digital Economy Corporation also said approved digital investments in 2025 totaled 87.4 billion ringgit, driven largely by growth in artificial intelligence, big data, data centers and cloud services. In this context, Anwar said the country needs to strengthen its capabilities in artificial intelligence, digitalization and semiconductors, while developing training and skills to raise the value of its technology activities. His focus on skills means attracting projects alone will not achieve the government’s stated objective unless it is accompanied by preparing a workforce able to participate in them. Anwar did not announce a start date for the proposed investment or details of its financing and implementation arrangements. The next step depends on turning the intention conveyed by the prime minister into announced arrangements and projects, while the report did not specify when that would happen.